Gas prices seem to be rising to an absurd level lately and it got me thinking about the cost of the everyday commute to work and back. I live 9.2 miles from my office. That works out to 368 commuting miles each month. At 50 MPG, I use 7.36 gallons a month on my commute. Not too bad except for the fact that my job requires quite a bit more driving when you take into consideration showings and listing appointments. Now, many of you simply drive to the office and back. And few of you get 50MPG, so let’s look at a realistic case.

Nampa to Boise is about 22 miles and let’s say the average vehicle gets 22MPG (I think I’m being generous here but it makes the math easier). That works out to 880 commuting miles a month or 40 gallons of gas. Gas prices are around $3.36 in Boise today, so you’ll spend $134.40 per month in gas for your commute alone. At 6.5% on a fixed 30 year home mortgage, you could have spent $21,263 more on a home within walking distance of work and been in the same financial position while also hedging against higher gas prices.

Now, I’m not writing this to convince everyone to move within walking distance to their work, but I think the cost of your commute should be given at least the same consideration as the heating, electrical, water and tax bills when you purchase a home. I don’t think gas prices are going down anytime soon and if you run the above scenario with $5 a gallon gas you could have spent $31,600 more on a home with the same monthly expenses.

So, how much does your commute cost?

Photo Credit: TahoeSunsets via Flickr

That was what many people (mostly real estate agents) have been calling Star, Idaho for the past few years. It seems only right for people to make silly predictions when a town like Eagle can sneak up on them and become immensely popular, seemingly, overnight. So, many predicted that Star would be the next Eagle.

Enter the real estate boom and bust.

It is common knowledge on Wall Street that if you hear a great stock tip on the news, it is probably too late to buy. This is somewhat true in real estate. If enough people go around saying that one town or another is going to be the next “hot” market, it is probably too late to jump in and make a profit (although it might not be too late to buy and live there).

Well, Star saw a great deal of interest as the market got hotter in the valley and it appears that a few developers showed up late and missed the “hot” market. According to the above article, a few developments have stalled, leaving homeowners with unfinished communities. It also appears that building has pretty much stopped.

So, what does all this mean? No, Star is not the next Eagle, but they have very similar landscapes with their foothills and river access. Star is also a small community with a lot of potential to grow into a great little town. And with the big adjustment in the real estate market, buyers have a great opportunity to build their homes on reasonably priced lots. However, there is also the possibility that Star could grow into that strange “country cousin” of Eagle, where something just isn’t right, if little or no planning goes into future development and growth.

For now, I’m going to stay put and see what happens. Any predictions?

Boise’s infamous “hole” on the corner of 8th and Main St. downtown is in the news once again. No, it isn’t under construction yet – that would seem too easy. Besides it’s only been ten years since the development agreement was first signed to start the project. We couldn’t really expect construction to resume this quickly, could we?

No, it is in the news because the latest development company, Charterhouse Boise Downtown Properties LLC, is at risk of losing control of the hole property. It seems that shortly after acquiring the project, Charterhouse defaulted on a loan and filed for Chapter 11 bankruptcy to protect itself from foreclosure. Well, it seems that Charterhouse has not followed the rules of the reorganization and may be forced into Chapter 7 bankruptcy in which case the primary lien holder could foreclose on the project.

The story of this small piece of land could be turned into a mini-series at this point. I’m starting to wonder if anything will ever be built on the property. I think they ought to fill the hole, lay some sod, add a few benches and create more space for the Capital City Public Market. What do you think?